Private Money Lender, Scam?

[Derek Tuohy]

I have 2 projects that I need financing for.  I bought two rental properties with cash.  One I need delayed financing on, and the other im looking to finance purchase amount plus rehab, then into a mortgage.  I reached out on Facebook to a private money lender.  This was part of his loan application:

"The only fee charged is for the Loan Protection Insurance (LPI ) which
is charged at 2% of the loan amount and has to be paid before closing
after signing our approval contract then we proceed to disbursing the
fund into your provided account as soon as the loan is duly insured."

Sounds fishy.?!

D